Categorías: General

LONG POSITION IN STOCK MARKET

What is Long Position in Stock Market Trading ?

A long position – also known as simply long – is the purchase of a stock, commodity or currency in the expectation that it will increase in value. Maintaining a long position is a bullish investment view.

Long positions are often used in the context of buying an option contract. The trader may hold a call or put option long, depending on the perspective of the underlying asset of the option contract. An investor who expects to benefit from an upward price movement in an asset will «go long» on a call option. The call option gives the holder the option to buy the underlying asset at a specified price.

The Many Faces of Long Position

Long is one of those investment terms that can have multiple meanings, depending on where it is used. The most common meaning of long is the length of time an investment is held. It should be noted that being in a «long» position has a different meaning when talking about options and futures contracts.

A «long» position – refers to the purchase of an asset in the expectation that it will increase in value. This is part of a position that is defined as bullish.

A long position in options contracts indicates that the holder owns the underlying asset.

In the forms of investment having a long position is the opposite of being in the condition of a short position.

In options, being long or in long position can refer to absolute ownership of an asset or to being the holder of an option on the asset.

Being long on an investment in stocks or bonds is a measure of time.

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